Answer: an individual who has a variety if investments tools to decrease risk.
Portfolio Diversification
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Diversification is the practice of spreading your investments around so that your exposure to any one type of asset is limited. This practice is designed to help reduce the volatility of your portfolio over time. One of the keys to successful investing is learning how to balance your comfort level with risk against your time horizon.
As the name suggests the basic definition of portfolio diversification is that it involves spreading investments across a broad selection of assets in order that losses in one part of the portfolio are offset by gains elsewhere.
Portfolio diversification can describe holding: Different asset classes – stocks bonds etc. Different assets within those classes – Google Amazon Johnson & Johnson Tesla treasury bonds corporate bonds ... Different cap sizes – small stocks large stocks etc. Different styles – value stocks ... ...